Shameek Kundu’s Post

The problem with the Goldman Sachs report about Gen AI is: Some companies are being idiots and spending millions on the "I" part of "ROI" .. There are some companies that feel like they need to hire an army of AI engineers and start building their own AI. These companies then complain about ROI as these AI engineers start taking the roadmap down a rabbit hole of product development. INSTEAD: Start with a simple AI pilot that should cost less than $500 to complete (using DIY no-code platforms) -- OR at max $20,000 if your company needs a full-fledged AI pilot that solves for a specific business case. By reducing the "I" part in "ROI" and taking a crawl-walk-run-fly approach, you pretty much guarantee a clear ROI -- and a clear roadmap for AI deployment and transformation in your company. ANOTHER TEST: If your AI pilot cannot be completed in 7 DAYS -- I repeat : SEVEN DAYS -- then scrap it and ask "Why?" (this will force everyone involved to think about the "I" part of the "ROI")

Great point by Luis Salazar that I want to repost here -- I call this the "boil the ocean" problem. >>> The problem is on the Investment side, especially in the enterprise. While Fortune 5000 wastes money due to the "not invented here" syndrome, SMBs, and individuals report outstanding results as they either pay for AI wrappers or no-code RAG solutions such as CustomGPT.ai and report 10x to 50x ROI. We have this well documented with input from over 15,000 organizations and 25,000 individuals. Generative AI, available in tens of thousands of AI apps, can automate and speed up many tedious tasks, from code co-development to summarizing cases or creating effective and personalized campaigns. On average, the cost of AI is less than 25 cents. The time savings for someone making $20/hr is, on average, 22 minutes or $10 => this is a 40X ROI. In our Fortune 500 clients, we measure similar ROI reported by employees who, regardless of corporate guidelines, use ChatGPT, Claude, or a no-code solution. The caveat is that in seven out of ten cases, management is not even aware of employees using AI tools. Reports such as this one from Goldman offer a myopic view as they are talking inside an echo chamber. <<<

"If you give them tools that allow them to expand their capacity to focus on things that are valuable for our clients, they can actually take on more." "During a recent interview on CNBC's #SquawkOnTheStreet, Goldman Sachs CEO David Solomon underscored the transformative power of AI, stating that it enables us to 'do more, do more quickly, and help our clients think about things in different ways...' Too much data changes too quickly for the status quo to be adequate, so the call is to let the right tools and technology be the catalyst for better ways of working and better outcomes. Let me know if you'd like to see how that might work for you with #AIDrivenRiskManagement from Interos Inc.

Goldman Sachs just went negative on GenAI, possibly signaling the beginning of the end of the AI bubble. I remain optimistic on GenAI. Here are Goldman Sachs main arguments against AI and my counter thoughts: 1️⃣ Skeptical Economic Impact 🚩Argument: AI will not significantly boost productivity or GDP. 📣 Counter: Historical technology advancements have often led to unforeseen economic benefits and task creation, AI could follow a similar path. 2️⃣ High Costs and Complexity 🚩 Argument: AI technology is too expensive and not designed to solve complex problems. 📣 Counter: Technological costs typically decrease over time, and AI's efficiency gains in certain tasks could eventually justify the investments. 3️⃣ Delayed Returns 🚩 Argument: The current AI investments are a sign of irrational exuberance, with no immediate payoff. 📣 Counter: Major technological shifts often require substantial initial investment with delayed returns, and the infrastructure being built today could pave the way for future breakthroughs and applications. 4️⃣ Technological Limitations 🚩 Argument: AI won’t achieve cognitive reasoning akin to human capabilities and will remain limited in its applications. 📣 Counter: AI continues to improve rapidly, and while current models have limitations, ongoing research and development may overcome these barriers, leading to more sophisticated and valuable applications. ------- What do you think? Is GenAI doomed to fail or are we just in a bubble? Stay nerdy my friends! #genai #chaptgpt #gemini #claude

Jamie Diamond, the CEO of JP Morgan had this to say in a recent letter to shareholders: "...we have grown our AI organization materially. It now includes more than 2,000 AI/machine learning (ML) experts and data scientists. We have been actively using predictive AI and ML for years — and now have over 400 use cases in production in areas such as marketing, fraud and risk — and they are increasingly driving real business value across our businesses and functions. We're also exploring the potential that generative AI (GenAI) can unlock across a range of domains, most notably in software engineering, customer service and operations, as well as in general employee productivity. In the future, we envision GenAI helping us reimagine entire business workflows. " Pretty significant statements from one of the leaders in financial services. AI is here to say, and it is going to be a huge thing. Now of course, finance has always been a big user of data and predictive modelling. Quantitative models for risk, volatility, alpha, asset pricing, liquidity and treasury functions are commonplace now-a-days, but still not well understood within the industry. GenAI could be an addition to this, and the areas of software, customer service and operational efficiency are exactly where we see the potential of this technology to evolve and create value for organisations. The link to the letter in the comments. #GenerativeAI #GenAI #artificialintelligence #AI #financialservices #finance #quant www.evolved.ai Evolved.AI

I recently came across an intriguing article by Goldman Sachs questioning the efficacy of Generative AI. According to the report, the giant investment bank argues that the US$1 trillion bet on generative AI might not yield the expected returns, projecting a mere 0.9% increase in the U.S.'GDP growth over the next decade. The technology, as per Goldman Sachs, falls short in addressing complex issues that justify its cost, excelling more in simple tasks like writing cover letters rather than profitable endeavors like automating advanced code. The uncertainty surrounding the impact of AI is vividly portrayed by the conflicting viewpoints in the tech industry. As tech investing remains a challenging domain, the true potential of generative AI is yet to be fully realized. While some believe in its transformative power, the skepticism raised by Goldman Sachs sheds light on the unpredictability of technological advancements and their economic implications. In a landscape where predictions are varied and outcomes uncertain, the future role of AI in reshaping industries remains a subject of speculation and debate. #AI #GenerativeAI #GoldmanSachs #TechInvesting #EconomicGrowth #TechnologyImpact

Goldman Sachs is actively integrating generative artificial intelligence into its operations, with a senior executive revealing at the Reuters NEXT conference that the company is developing twelve AI projects. These initiatives include using AI to interpret English-language commands for coding and to create documentation, but they are not yet client-facing due to the strict regulations in financial services. The company is proceeding with caution, mindful of the balance between leveraging AI's benefits and managing the associated risks. This cautious approach is mirrored by other financial institutions like Morgan Stanley and JPMorgan Chase, which are also exploring AI to enhance their services. The use of AI in finance raises the bar for professionals, who must now provide even greater value to justify their fees. This technology is attracting significant investor interest, although venture capitalists face challenges due to the dominance of large tech firms in the early stages of AI development. Despite this, there is optimism for more opportunities as the industry evolves. This news is generally positive for the generative AI industry, as it shows major financial institutions are investing in AI technology, which could lead to broader adoption and innovation in the sector. How do you think the integration of AI in financial services will evolve, and what implications might this have for the industry? #ArtificialIntelligence #Finance #Innovation

Early AI Adopters Are Set to Lead – Follow J.P. Morgan’s Bold Move and Transform Your Industry! J.P. Morgan has rolled out its proprietary AI chatbot, LLM Suite, to 50,000 employees, revolutionizing the way asset and wealth division tasks are handled. According to an internal memo seen by the Financial Times, this AI can assist with writing, idea generation, and document summarization. It’s like having a research analyst at your fingertips, providing information, solutions, and advice on various topics. Here are some key points: Tech Investment: J.P. Morgan is spending around $17 billion on technology this year, with 2,000 AI/ML experts and data scientists on board. CEO Insights: Jamie Dimon emphasized the comprehensive integration of AI across processes like errors, trading, hedging, and research. Industry Trends: Following suit, Morgan Stanley has also introduced its own AI assistant, "Debrief," for wealth advisors. The move highlights the growing importance of AI in finance, with top Wall Street firms heavily investing in these technologies to stay ahead. 💡 Artificial Intelligence meets Finance – The future is here! photo - https://lnkd.in/euzyF_HQ 🔗 Read more on ThinkAdvisor, Verdict #AI #Finance #JPMorgan #Innovation #ArtificialIntelligence #WealthManagement #TechnologyInFinance

🅰🅸 @ 🆆🅷🅰🆃 🅲🅾🆂🆃? This is an excellent overview from Goldman Sachs' of AI Spend. We are obviously in the early innings of AI, but currently, the cost outweighs the benefits. I am skeptical about the benefits AI will pay dividends to the masses. While it will 'make life easier,' it will be at the cost of ___. For me, that blank could be meaningful and rewarding work. I expect more centralization of wealth to be the outcome. With the dramatic increase in energy load required for data centers, I expect we will see the average person's costs increase dramatically. Hence, AI will drive inflation, reduce disposable income, cause more damage to the earth, and increase profit margins for centralized wealth and mega-corporations. #contra #ramblings #aiatwhatcost

Is generative AI falling short of expectations? Goldman Sachs thinks so. Back in April 2023, Goldman Sachs published a report that filled me with excitement. They predicted that generative AI could boost global GDP by 7% and enhance productivity growth by 1.5 percentage points over the next decade. The projected $150 billion market for generative AI software seemed incredibly promising. Fast forward a year, and Goldman Sachs has released a new report titled "Gen AI: too much spend, too little benefit?" This has prompted me to reconsider those initial optimistic predictions. The report highlights that despite significant investments in AI infrastructure, chips, and power grids, the anticipated returns are not materializing. Key obstacles, such as limitations in chip technology and power supply issues, are proving to be substantial hurdles. However, there is still a sense of optimism among some Goldman Sachs analysts. They believe that, despite the current setbacks, AI’s long-term potential remains significant. They suggest that while the AI bubble may not burst anytime soon, there are still considerable benefits that could emerge in the future. Have you noticed any real benefits from generative AI in your industry? #AI #GenerativeAI #Investment #TechTrends #GoldmanSachs #Productivity #BusinessGrowth